Tax rebate on home loan interest if construction period is more than 5 years

You can claim the tax rebate only when the construction is complete and the property is acquired by the buyer. After that the interest paid on the loan can be shown in five equal instalments in the following years to claim the benefit under section 24 of the income tax. Only thing is you have to get a detailed year wise break up of the loan interest you have paid to the lender. This document is essential to support your claim for deduction of interest amount from your income in the income tax return.

If the builder is not completing the construction then it will be better to lodge complaint against him as he will be penalised for that as per the rules and regulations in the matter. He will have to abide by those regulations. Under that threat he may complete the construction work in time. What I will suggest is talk to the other buyers also and lodge the complaint to the concerned authorities. A collective approach and action yields fruitful results in such cases.